FanDuel Expands Prediction Platform to Add 13 More Markets

FanDuel Sportsbook didn’t take long to expand its new prediction platform.

The sports betting giant expanded its new platform to 13 more states last week, bringing its total to 18. The news doesn’t come as a surprise, with FanDuel promising rapid expansion after initially launching in just five markets.

With the additions, FanDuel Predict is now live in the following US markets:

The three biggest additions were California, Texas, and Florida. The first two are among the top three largest US markets, but don’t have regulated sports betting. Florida allows for mobile sports betting, but only through Hard Rock Bet.

FanDuel’s entrance into Rhode Island is also big news, as bettors in the state are very unhappy with SportsbookRI, the market’s only mobile platform. While they are adding a second sportsbook, it won’t launch until the end of the year. That will give FanDuel and other prediction markets a chance to capture a large share of the market. 

FanDuel Risks Future Sportsbook Markets

While the expansion of FanDuel Predict is good news for the operator, it doesn’t come without risk.

By adding markets without legal online sports betting, FanDuel is putting itself at odds with state lawmakers. The majority of states view prediction markets as a form of sports betting and have been fighting to have them banned. Several regulators have promised to revoke sports betting licenses for operators who also offer prediction platforms. 

While Texas and California aren’t close to legalizing the industry, Nebraska is pushing to open up its mobile market. Given that the industry views sports prediction markets as a threat to tax revenue, it seems unlikely that FanDuel will secure a sportsbook license in the state.

The prediction market industry is hot right now, but has not won over as many sportsbook customers as expected. It is also facing a mountain of lawsuits from states, regulators, and tribes, who all accuse it of offering unregulated gambling. The White House has been the only ally the industry has needed, but political chaos could soon change that.

If the US rejects or severely regulates prediction platforms, it could lead to massive losses for FanDuel.